Correlation Between Xunlei and BOS Better
Can any of the company-specific risk be diversified away by investing in both Xunlei and BOS Better at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Xunlei and BOS Better into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xunlei Ltd Adr and BOS Better Online, you can compare the effects of market volatilities on Xunlei and BOS Better and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Xunlei with a short position of BOS Better. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xunlei and BOS Better.
Diversification Opportunities for Xunlei and BOS Better
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xunlei and BOS is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Xunlei Ltd Adr and BOS Better Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS Better Online and Xunlei is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Xunlei Ltd Adr are associated (or correlated) with BOS Better. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS Better Online has no effect on the direction of Xunlei i.e., Xunlei and BOS Better go up and down completely randomly.
Pair Corralation between Xunlei and BOS Better
Given the investment horizon of 90 days Xunlei Ltd Adr is expected to under-perform the BOS Better. In addition to that, Xunlei is 2.75 times more volatile than BOS Better Online. It trades about -0.01 of its total potential returns per unit of risk. BOS Better Online is currently generating about 0.45 per unit of volatility. If you would invest 296.00 in BOS Better Online on September 1, 2024 and sell it today you would earn a total of 43.00 from holding BOS Better Online or generate 14.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xunlei Ltd Adr vs. BOS Better Online
Performance |
| Timeline |
| Xunlei Ltd Adr |
| BOS Better Online |
Xunlei and BOS Better Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xunlei and BOS Better
The main advantage of trading using opposite Xunlei and BOS Better positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xunlei position performs unexpectedly, BOS Better can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BOS Better will offset losses from the drop in BOS Better's long position.| Xunlei vs. Travelzoo | Xunlei vs. Emerald Expositions Events | Xunlei vs. Ziff Davis | Xunlei vs. Direct Digital Holdings |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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